The Royal Saloon Building, located at the corner of Merchant Street and Nuuanu Avenue, replaced an 1873 hotel that had an attached saloon. The business was called the Royal Hotel owned by W. L. Green, who obtained the original retail spirit license for the property.

The business changed hands a few times until finally, Walter C. Peacock purchased the property in 1886. The Royal Saloon Building was built at the widening of Merchant Street in 1890. The new building was made of red brick and featured white stucco adornments on the exterior. Like other brick buildings, the saloon survived the controlled fires in 1900.

Between 1914 and 1925, the building expanded onto an empty lot next door along Nuuanu Avenue.

In 1916, the Saloon was closed, and the building was used as offices for other businesses during Prohibition. Walter C. Peacock sold the building in 1925 to Mercantile Printing Company. Once again, ownership of the property changed hands several times, until eventually, the building was returned to restaurant usage. The renovation was done by Anderson/Reinhardt in 1977.